The United States started deliveries of crude oil to the UAE. Although United Arab Emirates (UAE), one of the leading Gulf oil producers, where billions of dollars of raw material feeds the giant state-owned investment fund, does not look like a potential oil customer in Texas, according to US government data the country has purchased oil in December. This is a signal that the rise of the American shale industry is changing the energy markets around the world.
The deliveries of US condensate, a very light crude oil, have been preferred to local varieties because of their better quality, which makes it more suitable for UAE refineries.
“As a member of OPEC and a big producer of crude oil, I would think that they are extremely self-sufficient in their own oil supplies”, said the chairman of Lipow Oil Associates, Andrew Lipow. “The US oil deliveries will probably not keep on the background of the UAE’s own supply”, added he.
The end of the US oil export ban in 2015, coupled with the incredible growth of shale production, has changed oil flows around the world. The US shipments have increased from just over 100,000 barrels per day in 2013 to 1.53 million barrels per day in November 2017, directing to countries like China and the UK.
The United States has exported around 700,000 barrels of light local oil in December to the UAE, shows the national statistical office. These are the first deliveries of US oil to the fourth-largest producer in the Organization of Petroleum Exporting Countries (OPEC), according to data from the Energy Information Administration. Although the UAE exports more than 2 million barrels per day, it usually imports ultralight condensate for its refineries.
Until last year, the Emirates relied on Qatar for its supplies of condensate. The political dispute between the two countries continues, however, as the UAE banned the transfer of all Qatar tankers in June.